Tepid U.S. Consumer Spending Keeps Economic Rebound On Track
Shoppers ride down the escalator at the Menlo Park Mall in Edison, New Jersey, U.S., on Friday, Nov. 25, 2016. As Black Friday ushers in the year-end shopping rush, chains are touting larger price cuts than in 2015 -- a gamble that maintaining market share is worth squeezing margins.
Photographer: Michael Nagle/BloombergThe tepid pace of U.S. consumer spending in May is nevertheless enough to keep the economy on track for a rebound in the second quarter, helped by income gains, Commerce Department figures showed Friday.
Americans may be reluctant to ramp up spending until they see a faster pickup in wages, even as steady hiring, healthier balance sheets and low borrowing costs are helping to support their purchases. Since household spending accounts for about 70 percent of the economy, any persistent weakness would damp the outlook for a stronger rebound in economic growth after the lackluster pace of early 2017.